THE REASONS FOR FINANCIAL FAILURE

Written by Craig Lock


"Money can't buy you happiness. But it helps you to be miserable in comfort."

Why do people not achieve financial success?

Reason One: Lack of knowledge: or more specifically, a lack of desire to gain knowledge. Makerepparttar effort to read about financial matters and you will learn. Many people don't know where to go for unbiased advice so they do nothing.

Reason Two: Failure to set plans. Did you know that only 5 percent ofrepparttar 112757 population sets goals and only 2 percent has any form of written goals? Their actions have a sense of purpose: they are results oriented, they are motivated, they are positive. They are life's winners. Without a plan, it is easy to drift aimlessly, and live from day to day. If you set goals, you will know what you want to achieve.

Reason Three: Inefficient use of time and poor work habits. Time is like money - you can spend it or invest it in building a better you by self-development. When you waste time, you are wasting yourself. Plan your day - what do you really want to achieve today?

Reason Four: Lack of foresight. Achievers can look beyondrepparttar 112758 immediate and intorepparttar 112759 future. Although some may see your visions as dreams, do not forget that you have to have a dream to make a dream come true. Unless you are fortunate enough to be left a legacy,repparttar 112760 only money you will ever have working for you is what you save and invest. People with vision can multiply their income by investing in growth investments. Work for your money, then make your money work for you.

Reason Five: The need to conform. Dare to be different! Don't be afraid to take calculated risks. The people who make big money arerepparttar 112761 ones who dorepparttar 112762 opposite of what everyone else does - sell when everyone else buys, and vice versa.

Reason Six: Poor debt management through excessive borrowing. Many people have poor spending habits and having no budget. If you borrow to buy things that lose value, with interest payments you pay much more forrepparttar 112763 article than it cost initially. (Especially new cars, furniture etc.)

Financing Your Business

Written by Brett Krkosska


Findingrepparttar capital you need to finance your business can be a confusing and complicated process. Many great ideas stumble at this stage of business building.

Yet, moving through this stage breathes life into your business - giving it forward momentum like a roller coaster barreling downrepparttar 112756 first big hill. Finding money is just a matter of being informed and choosingrepparttar 112757 right path for money to enterrepparttar 112758 business.

There are several options available to you when searching for financing. Some methods of raising funds are less difficult than others, but all require some planning. Basic planning requires that you knowrepparttar 112759 answer to these three questions:

1. What will you userepparttar 112760 money for?

You must know exactly whererepparttar 112761 money will be used. You must be specific, as generalities are recipes for disaster. Carefully identifyrepparttar 112762 areas where money should flow into your business.

2. How much money do you need?

You should calculate your needs to carry you through initial startup and into your first several months of operation. It's necessary to have a realistic picture of your needs. Many businesses fail becauserepparttar 112763 money runs out beforerepparttar 112764 business reaches profitability.

3. How will you pay backrepparttar 112765 money?

You must have adequate cash flow from your business to repayrepparttar 112766 money to your source. Before asking for funds, make sure your fiscal projections and business integrity are soundly argued in a good business plan.

An integral part of a good business plan are financial statements for your business. You need to show sufficient cash flow in your business for repayment. You do this with information as found in an income statement, a balance sheet, and a projected cash flow statement.

SOURCES OF MONEY

Here are some options for funding your small business:

==> Credit Cards

One form of personal debt you should avoid is cash advances on your credit card. It's very tempting and very easy to get cash this way. If you do this you should pray. Pray with vigor. Then ask for forgiveness. This option is very expensive and extremely risky. Credit cards should only be used for short-term expenses, and not as a means to entirely fund a start-up business.

==> Friends and Family

Borrowing from your friends and family, especiallyrepparttar 112767 rich ones, is a good way for new businesses to get money. It's not uncommon for relatives to make low interest or no interest loans to family members. Just make sure all parties are aware of any risks. You don't want to alienate your family ifrepparttar 112768 business falls on hard times and you have trouble repayingrepparttar 112769 loan.

==> Personal Savings

You can use your personal savings or assets that can be converted to cash. If your savings are already low, put off that vacation, drive your old car a bit longer, avoid large purchases -- be thrifty in all areas and you can save faster for your business. Keep in mind that most lenders won't finance 100 percent of your business, so you'll need to invest some money yourself.

==> Line of Credit

If you have good credit, you may be able secure a line of credit from your bank. This can be handy in providing you with a source of working capital inrepparttar 112770 opening round of your business.

==> Bank Loan

Using collateral, such asrepparttar 112771 equity in your home, you can approach your bank for a loan against your business. This may or may not be an option for you, since some banks prefer to separate personal equity from business debt.

==> Venture Capital

People with lots of money love to make lots more money. Your job is to convince venture capital providers that you and your business can help them make lots more money.

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